Kroger Buys Midwest Grocer Roundy’s For $800M

The merger bug has been hitting the supermarket aisle for several years now, and it continued Wednesday as Kroger announced it would buy midwest grocery chain Roundy’s – the owner of Pick ‘n Save – for a cool $800 million. 

Under the deal, Cincinnati-based Kroger will take on Roundy’s $646 million debt, the Milwaukee Journal Sentinel reports.

Under the proposed deal, Roundy’s will continue to be based in Milwaukee and current senior management will remain in place.

Kroger says that while it expects to have a cost savings of $40 million over time, it doesn’t plan to close any stores.

The deal represents the second big change for Roundy’s, which exited the Minneapolis-St. Paul market last year, selling 18 Rainbow stores there to a group of local grocery retailers for $65 million, the Journal Sentinel reports.

After the merger, Kroger will operate more than 2,700 supermarkets in 35 states and employ nearly half a million people.

Kroger to buy Pick ‘n Save stores parent Roundy’s in $800 million deal [Milwaukee Journal Sentinel]

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